Strategy Inc Q3 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

MicroStrategy Q3 2024 Earnings Summary

  • Bitcoin Holdings: As of Sept 30, 2024, MicroStrategy held 252,220 BTC with a market value of $16B (vs. $9.9B cost basis, or $39,000 per BTC). All Bitcoin holdings are now unencumbered and fully held by the company.
  • Q3 BTC Acquisition: Acquired 25,889 BTC in Q3 for $1.6B at an average price of $60,839 per BTC. Year-to-date BTC holdings have risen 33.3% while assumed diluted shares increased 13.2%.
  • Capital Markets Activity: Executed $1.01B in convertible senior notes (2028, 0.625% interest, $183/share conversion), raised $1.1B through ATM equity offering, and redeemed $500M of high-interest secured notes, saving $100M in future interest expense.
  • New Strategic Plan ("21/21"): Targeting $42B in capital raises from 2025-2027 (split equally between equity and fixed income). Goals by year: $10B in 2025, $14B in 2026, $18B in 2027. Capital intended for Bitcoin acquisition.
  • BTC Yield KPI: MicroStrategy introduced "BTC yield" (growth in BTC per share) as a core metric. Achieved Q3 BTC yield of 5.1%; year-to-date 2024 BTC yield of 17.8% vs. 7.3% full-year 2023. New target: 6%-10% annualized BTC yield from 2025–2027 (up from prior 4–8%).

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Shirish Jajodia: Hello everyone and good evening. I am Shirish Jajodia, Vice President of Investor Relations and Treasury at MicroStrategy. I will be your moderator for MicroStrategy's 2024 Third Quarter Earnings Webinar. Before we proceed, I will read the Safe Harbor statement. Some of the information we provide during today's call regarding our future expectations, plans and prospects may constitute forward-looking statements. Actual results may differ materially from these forward-looking statements due to various important factors including the risk factors discussed in our most recent 10-Q filed with the SEC. We assume no obligation to update these forward-looking statements which speak only as of today. Also during today's call, we will refer to certain non-GAAP financial measures. Reconciliations showing GAAP versus non-GAAP results are available in our earnings release and presentation, which were issued today and are available on our website at microstrategy.com. I would now like to welcome you all to today's webinar, and let you know that we will be taking questions using the Q&A feature at the bottom of your screen. You can submit questions throughout the webinar and Michael, Phong or Andrew will answer questions at the end of the session. Please be sure to provide your name and your company's name when submitting your questions. Now, I'll walk you through the agenda for today's call. First, Phong Le will cover the business and operational results for the third qua

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